🟠 Why Bitcoin Crashed to $60K — The Hidden Reason
Bitcoin plunged from $77,000 to nearly $60,000 earlier this month, wiping out billions across the crypto market. While many blamed macro pressure and ETF outflows, a quieter but powerful force played a major role: market makers.
Market makers are liquidity providers who constantly buy and sell to keep markets smooth. They don’t bet on price direction — instead, they hedge risk using spot and derivatives.
📉 What went wrong?
Between $75K and $60K, options market makers were heavily short gamma, meaning they were exposed to volatility. As BTC started falling, they were forced to sell Bitcoin aggressively to hedge their positions.
This created a self-reinforcing sell loop: Price falls → dealers sell to hedge → price falls more.
According to 10x Research, nearly $1.5B in negative gamma accelerated the crash. Once the final gamma zone near $60K was absorbed, Bitcoin quickly stabilized and rebounded.
🔁 Important:
This mechanism works both ways. In late 2023, similar hedging activity helped fuel BTC’s explosive rally above $40K.
📌 Key takeaway:
Options market structure now plays a major role in Bitcoin price action — just like traditional markets.
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